Basel Committee finalizes measures to curb window-dressing in G-SIB framework

The Basel Committee published amendments requiring banks to report G-SIB score indicators based on average values over the reporting year, instead of year-end values, to address unacceptable 'window-dressing' behavior. This revised standard will be implemented by January 1, 2030. Additionally, the G-SIB reporting and disclosure threshold for leverage ratio exposure measure will increase from EUR 200 billion to EUR 350 billion starting in 2027. The Committee is also consulting on incorporating the treatment of cross-border exposures within the European Banking Union (EBU) into the G-SIB methodology, with comments due by January 14, 2027.